RBC was followed by Bank of Montreal (TSX:BMO), CIBC (TSX:CM), Scotiabank (TSX:BNS), TD Canada Trust (TSX:TD) and Desjardins Group — a financial co-operative with offices throughout Quebec and parts of Ontario.

Banks tend to raise their own prime rates after the central bank raises its lending rate to them to pass their higher borrowing costs on to consumers.

Commercial lenders use their prime rate as a benchmark for setting some other rates including variable-rate mortgages and some lines of credit.